Key Takeaways
- Polygon’s MATIC token appears to be heading towards $1.63.
- Breaking through this resistance level would likely trigger a new bull run.
- Prices must hold above $1.24 for the bullish outlook to prevail.
Polygon’s MATIC token looks ready to resume its uptrend as prices build a massive bullish pattern and whales accumulate millions of tokens.
MATIC Prepares for New Bull Run
Polygon is showing an impressive optimistic outlook.
The scaling solution’s MATIC token appears to have developed a head-and-shoulders pattern on its daily chart since early June. The token is currently forming the right shoulder of the bullish formation.
A spike in buying pressure that pushes MATIC above the head-and-shoulders’ neckline could lead to a significant run-up. Slicing through the $1.63 resistance level could mark the beginning of a new uptrend towards $2.64.
This bullish target is determined by measuring the height between the pattern’s head and neckline and adding that distance from the breakout point.
The holders distribution chart shows that buy orders have been increasing over the last two weeks. Many addresses holding millions of dollars in MATIC, colloquially known as “whales,” have drastically increased their positions.
The wallets on the network with 10,000 to 10,000,000 MATIC have acquired roughly 54,370,000 tokens since Aug. 22, worth more than $76 million.
These fundamental factors suggest that retail and institutional interest is returning to MATIC, and volatility could follow.
In the event of a sell-off below the $1.24 support level, MATIC could target the 200-day moving average at $0.92.
